The government proposed paying generation and transmission
companies about 19 billion reais ($9.4 billion) for the renewal
of concessions due to end between 2015 and 2017.

Eletrobras was expecting compensation of almost 30 billion
reais for their assets, said president Jose da Costa Carvalho Neto on Oct. 31, one day before the company knew that the
government proposed to pay 14 billion reais for them to accept
the new terms.

The government used a globally accepted method to calculate
the compensation based on the current value of assets and
depreciation, the official said.

The government expects that the market will keep investing
in electric power generation in Brazil because the country’s
economic boom means that more dams will be needed, the official
said.